KINGSTON, Ontario Jan 10 Canada's economy will
likely be more sluggish than expected in the near term and the
Bank of Canada will take that into account in its revised
economic forecasts later this month, the Bank of Canada's Senior
Deputy Governor Tiff Macklem said on Thursday.
"We continue to expect economic activity to pick up through
2013, but near-term momentum now appears to be slightly softer
than previously anticipated," Macklem said.
"These and other developments will all be taken into
consideration as we revise our economic projections, to be
published on January 23 with the next interest rate decision,"
Macklem, tipped by markets to replace Mark Carney as the
next governor of the Bank of Canada, also said the bank may want
to set rates higher than would otherwise be warranted, citing
high household debt as a factor that would influence the timing
and degree of any rate hikes.